Qualifying Employment in Aviation (Personal Tax) Rules
Legal Notice 378 of 2017 has amended the Qualifying Employment in Aviation (Personal Tax) Rules which were originally promulgated in 2016, and amended by means of Legal Notice 1 of 2017.
Under the Qualifying Employment in Aviation (Personal Tax) Rules, which have come into force specifically under the auspices of the Maltese Income Tax Act, expatriates holding an eligible employment and office under a qualifying contract of employment in the aviation industry in Malta may opt to benefit from a reduced flat rate of tax of 15% on their employment income derived in respect of work or duties carried out in Malta. Eligible employment and office under the Rules include the following:
Chief Executive Officer, Chief Operations Officer, Chief Financial Officer, Chief Risk Officer, Chief Financial Officer, Chief Technology Officer, Chief Commercial Officer, Chief Investment Officer, Chief Insurance Officer, Accountable Manager, Deputy Accountable Manager, General Manager, Flight Operations Manager, Nominated Person Flight Operations, Training Manager, Nominated Person Training Ground Operations, Nominated Person Ground Operations, Continuing Airworthiness Manager, Nominated Person Continuing Airworthiness, Compliance Manager, Quality Systems Manager, Safety Manager, Flight Dispatch Manager, Instructor Manager, Head of Marketing, Head of Public Relations, Actuary, Underwriting Manager, Risk Management Officer, Key Account Manager, Product Coordinator, Material Coordinator, Engineering Reporter, Aeronautical Engineer, Head of Maintenance Operations, Aviation Systems Developer, Key Aviation Specialist
An applicant must hold an eligible employment and office with companies licensed and recognised within the remit of the Authority for Transport in Malta (TM), and the applicant’s annual salary must be of at least €45,000 (but is subject to adjustment in terms of the retail price index).
This Programme is available to EU/ EEA and Swiss nationals for a period of five years, and applicants are eligible to a one time extension of another five years, whilst third country nationals are eligible for a period of four years and are eligible to a one time extension of four years.
By virtue of LN 378, the Rules have been amended so that no further tax will be charged on income from a qualifying employment in excess of five million Euro.